Eight banks increased their ranking by Fitch Ratings on Wednesday (27/1/2010), the Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, Bank CIMB Niaga, Bank Danamon, Bank Internasional Indonesia, Bank NISP OCBC and UOB Bank Buana.

Earlier, on January 25th, the same institution to raise the rank of Indonesia `s debts in foreign currency, from BB to BB + with stable outlook.

“This ranking reflects the increase in endurance in the midst of the financial performance of operating conditions more difficult, especially in the first quarter of 2009,” said Director of Financial Institutions Group Fitch Ratings Tan Lai Peng in Jakarta.

He explained that the increase was ranked according to Fitch Ratings’ expectations that the improvement of banking in Indonesia will continue because the macro economic outlook is stronger in 2010.

Although ranking these banks rose, Tan admitted that the quality of loans in almost all banks in 2009 decreased. This decline is expected to continue in early 2010. However, Tan believes, operating conditions are better this year will support the credit quality and profitability in the future.

In the midst of political criticism

According to analysts of capital markets and banking, Mirza Adityaswara, Indonesia increase state rank reflects the trust of international agencies on macro economic conditions of Indonesia. In 2009, Indonesia one of the few countries in the world that have a positive economic growth, which is 4.3 percent.

This year, Mirza said, Indonesia’s economic growth could be supported by 5,3-5,7 percent with a large population, heavy reliance on exports is relatively low, a healthy banking system, as well as fiscal policy and financial authorities to be careful.

“So, in the midst of criticism against the government some politicians, turned out to agencies such as Fitch Ratings gave praise to raise the ratings of Indonesia and Indonesian banks,” said Mirza.

Related increase in the ranks of eight banks with liquidity, Mirza said, since the 2009 third quarter, is no longer a problem of liquidity in the domestic banking system.

The flow of credit in this year, according to Mirza, will depend on the demand for credit and real sector activity for bank loans that have not been distributed is still quite large.

Should, go Mirza, real sector activity in this year may be in line with the improvement of the global economy and the domestic economy. Thus, loans from banks that have not been distributed can be used by employers.

BI Deputy Governor Muliaman D Hadad said, his department saw the condition of the national banking system is now strong enough and get the trust of the community. This is the opportunities for banks that will begin to look the global market.

“We need not lose heart because of our banking industry is strong enough, there was even a glance at the global market,” said Muliaman said the Banking Industry Dialogue in 2010 in the Multipurpose Building Indonesian Banking Development Institute (LPPI), Jakarta, Monday (25 / 1 / 2010).

He insisted, if necessary, it would facilitate the national banking system to speak with the banking authorities of other countries in order to obtain legal umbrella to go global. Related to this, the BI will also hold talks with member countries of G-20.

“As a member of the G-20, we can speak with authority from other countries in order to dipayungi to go global,” he said.

Banking Industry Dialogue was held LPPI to facilitate a meeting between the banking industry and the regulator. Discussed here further that agenda will be made in answering the opportunities and challenges in the Indonesian banking system in 2010.

This event was also a forum for deepening the Bankers Dinner held BI on January 22, 2010. Present in this dialogue of the Board of Banking Association and all relevant directors or echelon I of the government banks, regional development banks, national private banks, banks mixed, Islamic banks, foreign banks, and people’s credit banks.

“Activities that have nothing to do with the interests of customers,” said Obama in an interview with ABC, as quoted by Bloomberg, last week.

Transactions are usually called proprietary trading practices are the cause of speculation in the U.S. property market is the cause of the crisis in 2008. So, go Obama, limiting the size and activities of financial institutions necessary to reduce excessive risk.

This proposal will become part of the reform of financial regulation that will govern the perpetrators to behave reasonably. “U.S. financial regulatory system currently is not enough to watch the extra risks and player behavior irresponsible,” Obama said.

Close of business “private equity”

The proposal would force the U.S. banking giant, such as JP Morgan, Goldman Sachs, and Morgan Stanley, the business unit to sell their private equity. Can not be denied, big banks like Goldman would lose a lot of revenue.

Understandably, the business was, in the last year Goldman became the most profitable bank in Wall Street history. More than 90 percent of income before tax from Goldman Sachs private equity unit is.

Managing Director of Goldman Sachs Lloyd Blankfein said, the company must generate their own profits in order to cover losses that occur due to the crisis in 2008.

State government plans Uwak Sam is actually not much different from the British Government did. A month ago, the financial services authority in England has announced plans to restrict the proprietary trading at banks. As a result of the rule, the country’s banking industry must set aside capital reserves to 47 billion U.S. dollars to cover potential losses from the business.

This rule is not a criticism. Bruce Ettelson, legal consultant at Kirkland & Ellis LLP, says, this will impact on the rule change on Wall Street and many business deals have been agreed previously. “This rule also increasingly shrinking sources of funding for private equity and hedge funds,” he said.

“When compared with the trade balance surplus by the end of December 2008, which reached 7.82 billion U.S. dollars, the trade balance surplus in 2009 increased three times compared to the year 2008,” said Head of the Central Statistics Agency (BPS), Rusman Heriawan in Jakarta, Monday (1/2/2010) when the monthly report on inflation, exports, imports, and economic indicators other.

The trade balance showed an increase or decrease in value of exports and imports. Position in December 2009, Indonesia’s trade balance showed that the cumulative exports reached 116.49 billion U.S. dollars. The value of imports of 96.86 billion U.S. dollars. Thus, the export value of more tingga 19.63 billion U.S. dollars compared to the value of imports, or a surplus. “This is a signal that the actual beginning of the world economy is recovering,” said Rusman.

Having suffered financial crisis and the global economy since the end of 2008, the value of monthly exports Indonesia has always been a negative growth starting from January to September 2009. However, starting in October 2009, the export value grew back positive.

Between October to December 2009, Indonesia exports helped by an increase in international trade in some commodity, namely crude palm oil (CPO), coal, and copper. Export this causes non-oil exports in December 2009 reached 10.83 billion U.S. dollars, or up 28.3 percent compared to November 2009.

Exports in December 2009 it was the biggest in the history of Indonesian exports. Because the highest monthly exports in May 2008, ie 12.9 billion U.S. dollars. “It was exceeded by exports in December 2009, which reached 13.33 billion U.S. dollars,” said Rusman.

“For moms who love to collect gold, it’s time to buy gold because the price is going down,” said Head of the Central Statistics Agency (BPS) Rusman Heriawan said in Jakarta on Monday (1/2/2010), when the monthly report on inflation, exports, imports, and economic indicators other.

BPS report shows, from the 66 cities surveyed during January 2010, no one city or any district that experienced deflation. However, BPS was noted that some commodities are falling in price, ie, orange, gold, chicken meat, or eggs.

“As usual, the fruit is always a major factor of deflation. We also recorded a deflation in the clothing commodity groups,” said Rusman.

BPS has not seen any impact of the realization of the Free Trade Agreement China-ASEAN (CAFTA) which causes lower clothing prices. On that basis, the price of clothing is expected to further come down when CAFTA was implemented starting January 1, 2010.

“If the FTA before it is deflation, the clothing could have deflation in February 2010,” said Rusman.

Clothing by a deflation in January 2010 of 0.2 percent. Commodities that contributed to the deflation of personal items and clothing are gold jewelry, which is 0.04 percent.

Deputy Director and Executive Director of SBI Group Pratip Chaudhuri says, than other ASEAN countries, “Indonesia is our main priority,” as quoted by the oldest English-language daily in India, The Statesman, Sunday (24/1/2010). After Indonesia, banks in Thailand and the Philippines to be the next target.

In Indonesia, SBI Group banks aimed beraset Rp 1 trillion, with a minimum number of branch offices 40 offices. Acquisition budget 200 million U.S. dollars. “Target acquisition accomplished in the second quarter of this year,” added Subramanian Sathyamurthy, Director of Operations, Treasury, and Technology SBI Indonesia, to Cash, Tuesday (26/1/2010). The plan, SBI will combine this new bank with Bank Indomonex already ruled since 2006.

Do not want to miss, Union Bank claimed the shooting of four middle-class banks in Indonesia. Told The Financial Express, Indian government-owned bank that claimed to have received approval from shareholders of the bank in Indonesia. Other Indian banks that had expressed interest to enter Indonesia is the Punjab National Bank (PNB). However, that plan has not heard the rest until now.

Not only investors from India are seriously targeting banks in Indonesia. South Korean banks, such as The Industrial Bank of Korea (IBK) and the Korea Development Bank (KDB), also have the same interests. Management both the red plates bank claims are just waiting for approval from their shareholders to run the expansion.

Although looks aggressive, move investors from India and South Korea was practically behind when compared to investors from Malaysia and Singapore who first tasted the sweetness of a bank in the country.

Director of Licensing and Banking Information BI Bank Indonesia Swastanto Joni said, until now BI has not received application for a license acquisition from Korean investors. Finally, BI has received application for a license RHB Banking Group will acquire Bank Mestika Dharma.

The aggressiveness of foreign investors are apparently triggered by the sweetness of the banking business in the country. In addition to the broad market, they are tempted by the interest margin is nearly 7 percent and the liberal ownership rules, up to 99 percent.

“The fund has entered into our account at Bank Indonesia, Thursday (21 / 1) then,” said Director General of Debt Management, Finance Ministry, Rahmat Waluyanto in Jakarta, Sunday (24 / 1).

The entry of these funds will add to its reserves at the Bank Indonesia. However, at the same time, the influx of funds also increased the number of nominal bonds issued by state governments since 1997 to close to Rp 1,000 trillion at the moment, precisely Rp 998.154 trillion.

That is the data recorded at the Directorate General of Debt Management, Ministry of Finance, as of January 20, 2010.

State bonds or official called the State Securities (SBN) which is the largest bonds traded in the bond market, which reached Rp 743.6 trillion. That includes Government Bonds (SUN) fixed interest amounting to Rp 399.9 trillion.

After that, there was SUN with a floating interest rate (variable rate) whose value has reached Rp 143.3 trillion; and bonds without interest (zero coupon bond) is Rp 28.986 trillion. The bonds issued U.S. dollar-denominated to date has reached Rp 150.255 trillion.

The government also has published the Samurai Bond or bonds issued only in denominations of yen and only published in the Japanese bond market, which currently has reached USD 3.561 trillion. Other types of debt securities that have been published government is based Islamic bonds, or sukuk, which currently has reached Rp 17.561 trillion.

In addition to the outstanding bonds on capital markets, the government also still bear the burden of bonds that are not traded, the debt papers issued after the 1997 crisis. The total value of these bonds reached Rp 254.56 trillion.

The dollar traded near the strongest position in over 7 months following the signal the euro countries with the largest economy was gaining momentum from the high demand for assets.

The greenback is expected to continue strengthening this week ahead of the U.S. manufacturing sector report and household purchases. Both predicted experiencing expansion. Euro also potentially weaken the yen over the issue of Greece’s budget deficit widened more and more expected.

“The data coming out this week confirms that the U.S. economy improves. Improving economic fundamentals will support the U.S. dollar,” said Koji Takeuchi, senior economist Mizuho Research Institute Ltd. of Tokyo, today.

The dollar traded at U.S. $ 1.3864 per euro at 8:06 am in Tokyo, rose from U.S. $ 1.3863 in New York last week. The dollar was at 90.12 yen from 90.27 in New York. Euro survive the weakening yen 124.96 yen from 125.13, after a touching 124.43, the weakest level since 28 April.

Manufacturing index from the Institute for Supply Management is at 55.5 in January. Figures above 50 indicate the existence of expansion. This recovery continued to strengthen the signal in the U.S.. Likewise, the increase in household purchases of 0.3%.

Last week, the U.S. dollar strengthened encouraged by the report the Department of Commerce regarding the increase in GDP by 5.7% per year during the October to December. The increase is the fastest in 6 years.

Asian currencies weaken, led by the South Korean won and Philippine peso against the dollar on concern China will restrict kredi to hold regional export demand.

The MSCI Asia-Pacific Index dropped to the lowest level during 2010 after Reuters reported several banks in China to provide cash to increase reserves. Pressure on the won continues triggered by a report that GDP fell to 0.2% in the quarter IV of 3.2% the previous period.

“Asian Currency weakens influenced China talks about the possibility of doing the tightening and asked a number of banks to raise reserve ratios again. This led to indiscriminate selling Asian currencies, the yen strengthened on the other hand,” said Joanna Tan, a regional economist Forecast Singapore Pte.

Won weakened 1.3% to 1165.50 per U.S. dollar at 2:18 pm in Seoul and had time to reach 1166.50, its lowest level this year. Peso weakened 0.5% to 46.47 and the Malaysian ringgit to be depressed 0.6% 3.4205. Rupiah also down 0.4% to 9380.

China’s central bank earlier this month the bank raised compulsory registration deposits 0.25% to 16% to keep credit growth and prevent asset bubbles in shares and property.

Reports of credit tightening reduces the demand for shares in China market. This causes the Shanghai Composite Index fell 2.3%. While the external market is also down.

On the other hand, the yen and U.S. dollar gained on the euro. The yen strengthened to 126.44 per euro in Tokyo, from 127.75 in New York yesterday. U.S. dollar increased to USS1, 4092 per euro.

Taiwan dollar strengthened encouraged by government reports of a record increase in manufacturing production. The data that was launched this month showed Taiwan exports rise in line with the decline in the unemployment rate. Achievement was raised currencies to its highest level since September 2008.

“Taiwan dollar appreciation as a result of moving the entry of hot money into Asia, including Taiwan. The central bank is always in the market to overcome the high volatility,” said Tarsicio Tong, forex dealers Union Bank of Taiwan in Taipei.

South Korea’s economic growth slowed during the quarter IV exceeded the median estimate of the economy. Kim Myung-Kee, the Bank of Korea officials, said the slowdown that occurred in October through December is only temporary adjustment does not affect the national growth momentum.

“Global economic recovery is still in process and should be recognized, not as smoothly and as quickly as expected. So the market is still moving volatile during the quarter I,” said Lindawati Susanto, head of FX Trade PT Bank Resona Perdania in Jakarta.

Singapore dollar weakened 0.4% to S $ 1.4041 per U.S. dollar, Thai baht depressed 0.2% to 33.02. China Yuan unchanged at 6.8269

: The yen weakened the currency 16 main partner countries associated with the prospect of Federal Reserve Governor Ben S. Bernanke back to his post for the second period and continued economic recovery in the country in the world’s largest.

The yen weakened ATS euro for the first time in 8 days after President Barack Obama received assurances from the Senate office about the survival Bernanke. U.S. dollar weakened against a number of currencies with higher yields following a report by economists estimate that home sales in the U.S. fell in December.

“Slowly kondiri improved during Bernanke served. So far, the Senate gave support. It has the potential to raise the sentiment, ’said Robert Rennie, head of currency research Westpac Banking Corp. Sydney.

The yen weakened to 127.31 per euro at 9:11 pm in Tokyo, from 126.98 in New York on January 22.

The median estimate of economists say home sales in the U.S. fell to 6 million per year in December, from 6.54 million in November. National Association of Realtors will publish the data today.

According to the 91 economists surveyed, the Fed would keep overnight interest rates between 0% and 0.25% on January 27.